Ofgem has launched a consultation on proposals to introduce an early competition Offshore Transmission Owner (OFTO) build model and update the existing late competition OFTO build model for offshore electricity transmission assets, with the aim of supporting future offshore network delivery and coordinated infrastructure identified through the National Energy System Operator’s Centralised Strategic Network Plan. Ofgem proposes that the early competition model would apply to both radial and non-radial assets and would generally remain optional for generators, although mandatory centralised tenders could apply to certain strategically coordinated projects. The consultation sets out proposals for revised tender processes, qualifying project criteria, non-price evaluation measures, delay-risk allocation, cost adjustment mechanisms and delivery assurance measures, including milestone-based penalties, post-award securities and Preliminary Works Payments. Ofgem also proposes adapting the onshore Competitively Appointed Transmission Owner cost assessment framework for offshore projects to manage cost uncertainty during development, while retaining the existing Tender Revenue Stream approach with revenue periods of up to 25 years. For the late competition model, Ofgem proposes updated tender arrangements for more mature projects, including flexibility for Engineering, Procurement and Construction structures and revised timing aligned with Contracts for Difference allocation rounds and wind farm investment decisions. Ofgem said the proposals are intended to provide greater flexibility, improve coordination and establish a clear regulatory framework ahead of future offshore transmission projects. The consultation closes on 2 July 2026.